Etihad Airways posts record results for second quarter and first half of 2013

Etihad Airways today announced its strongest second quarter and half-year financial performances on record, reflecting continued solid growth in its airline alliance strategy and global cargo operations.

The national carrier of the United Arab Emirates
achieved an eight per cent increase in Q2 2013 passenger revenues, generating
US $921 million (2012: US $855 million), while passenger revenues for the first
half of 2013 reached US $1.8 billion (2012: $1.6 billion), up by 13 per cent.

Revenue generated by codeshare and equity alliance
airline partners was US $184 million in Q2 2013. This was 25 per cent above the
US $147 million turnover in the same period of 2012. Partnership revenue
comprised 20 per cent of the airline’s total passenger revenue in both Q2 and
the first half of 2013.

The President and Chief Executive Officer of Etihad
Airways, James Hogan, said the company’s Q2 and half year results were achieved
despite the continuation of unsteady economic and geopolitical factors, with
air fare yields slightly lower for the quarter, compressed by strong
competitive capacity growth and resultant price competition.

“Despite the tough global trading climate, we have
still achieved record, double digit growth in both Q2 and the first half of
2013,” Mr Hogan said.

“This reflects not only the continuing popularity of
our Abu Dhabi hub, but the growing maturity of our airline partnership strategy
and the strength of our cargo operations, which continue to well exceed
industry growth rates.”

Mr Hogan said a significant achievement in Q2 was the
improved contribution of the Etihad Airways equity alliance partners, in
particular Germany’s airberlin, which has become the largest codeshare
contributor. This reflects increased connectivity between the integrated
networks of the two airlines.

Etihad Airways increased its codeshare partnerships
during Q2, adding Serbia’s national carrier, JatAirways, and announced new
partnerships with Air Canada, South African Airways and Belavia of Belarussia,
all to take effect during Q3. With these inclusions, Etihad Airways will have
45 codeshare partners and a virtual global network of more than 350
destinations, the most comprehensive of any alliance or Middle Eastern airline.

This growth was achieved through the delivery of two
new Boeing 777-300 passenger aircraft – a three-class version seating 328
passengers and a two-class model seating 380 - and a corresponding
increase in flights, including new services to Amsterdam, Sao Paulo and
Belgrade.

Results for Q2 were further strengthened by the
introduction late in March of daily flights to a fourth new destination,
Washington, D.C.

Etihad Cargo continued to achieve the strongest growth
in the company, with 112,963tons uplifted in Q2 2013 (2012: 89,470 tons) and
215,124 tons in the first half of 2013 (2012: 174,622 tons). This reflected a
massive 26 per cent growth in Q2 and 23 per cent growth for the first half of
2013.

The growth in cargo volumes was underpinned by the
delivery in Q2 of three new freighter aircraft – one Airbus A330-200F, one
Boeing 777-200F and the company’s first Boeing 747-8F, which was wet leased
from Atlas Air – taking the cargo fleet to nine. Cargo performance was further
boosted by increased passenger services, providing more under-floor freight
capacity.

During Q2 Etihad Airways announced that, subject to
regulatory approvals, it would acquire 24 per cent of India’s Jet Airways,
enlarging the Etihad Airways equity alliance and group network.

In addition, Etihad Airways signed an Initial
Memorandum of Understanding with the Government of Serbia to discuss
potentially investing in JatAirways. Etihad
Airways also secured Australian regulatory approval to increase its equity
stake in Virgin Australia from 10 per cent to 19.9 per cent.

As well as its Virgin Australia stake, Etihad Airways
holds a 29 per cent shareholding in airberlin, 40 per cent of Air Seychelles
and three per cent of Aer Lingus.

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